FT News Briefing Is a post-dollar world coming?
Sep 13, 2022
Inflation in the U.S. is predicted to ease thanks to falling energy prices, but the Federal Reserve's rate hikes might continue. Discussions point to a potential decline in the dollar's status, with geopolitical tensions like the Ukraine conflict influencing global currency dynamics. Experts suggest a shift towards regional currencies could emerge, reshaping international trade. Also, China's efforts to expand its influence in Central Asia are highlighted, indicating a changing landscape in global economics.
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US Inflation Outlook
- US inflation may appear to slow due to lower gas prices, but core inflation remains a concern.
- The Federal Reserve likely won't ease aggressive rate hikes based on the August CPI report alone.
Decline of the Dollar
- The US dollar's dominance is waning due to several factors, including America's use of sanctions and the dollar's overvaluation.
- Smaller regional currency blocs are emerging, challenging the dollar's global reserve status.
Ukraine's Strategic Offensive
- Ukraine's recent offensive success is attributed to strategic planning, targeting Russian logistics, and higher troop morale.
- The offensive aims to erode Russian will to fight by demonstrating the war's unwinnable nature.